Pleasing Signs As A Number Of Insiders Buy XPON Technologies Group Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in XPON Technologies Group Limited's (ASX:XPN) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for XPON Technologies Group

The Last 12 Months Of Insider Transactions At XPON Technologies Group

Notably, that recent purchase by Jamie Olsen is the biggest insider purchase of XPON Technologies Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.016. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months XPON Technologies Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

XPON Technologies Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At XPON Technologies Group Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at XPON Technologies Group. Not only was there no selling that we can see, but they collectively bought AU$300k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of XPON Technologies Group

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that XPON Technologies Group insiders own 45% of the company, worth about AU$2.5m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About XPON Technologies Group Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about XPON Technologies Group. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that XPON Technologies Group is showing 5 warning signs in our investment analysis, and 4 of those shouldn't be ignored...

But note: XPON Technologies Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com